Money Rehab with Nicole Lapin - How to Make Money from Dividends

Episode Date: June 12, 2023

Originally aired 2.7.22 Today Nicole shares how to make some serious dough from the beautiful force of dividends. Tune in to get your $!

Money rehabbers, you get it. When you're trying to have it all, you end up doing a lot of juggling. You have to balance your work, your friends, and everything in between. So when it comes to your finances, the last thing you need is more juggling. That's where Bank of America steps in. With Bank of America, you can manage your banking, borrowing, and even investing all in one place. Their digital tools bring everything together under one roof, giving you a clear view of your finances whenever you need it. Plus, with Bank of America's wealth of expert guidance available at any time, you can feel confident that your

money is working as hard as you do. So why overcomplicate your money? Keep it simple with Bank of America, your one-stop shop for everything you need today and the goals you're working toward tomorrow. To get started, visit bofa.com slash newprosmedia. That's b-o-f-a dot com slash n-e-w pros p-r-o-s media. bfa.com slash newprosmedia. Before we get started with today's episode, I wanted to take a moment to say thank you. If you're hearing this, you're listening to our podcast, obviously. But what might not be so obvious is how much that means to me. I have always wanted to do a daily show, but like clockwork, as soon as I started putting this show together, the imposter syndrome set in, and I had to deal with those mean little

bitches inside my head that told me no one would listen to my show. But here you are. You are what's allowed me to tell that mean girl inside my head to take several seats. So when I'm having a hard day, I sometimes, confession, read the money rehab reviews because nothing makes me more inspired and motivated to keep making this show for you than to see what you're saying. Our producer Morgan is going to read some of the reviews that have been giving us the biggest smiles lately. The title of the first one is She Saved My Marriage.

And it reads, I was about to give up when I found money rehab. My husband and I were having issues about money and we were about to get a divorce when I listened to one of the episodes about keeping your money on your mind. I binged and listened to some more episodes. And when I shared this gem with my husband, Nicole saved me and my marriage. Another one reads, a friend introduced me to this podcast. Since then, I was addicted to money rehab. It changed my life for the better. Debt-free, I can really say that I enjoy my life so much more than before I started listening to Nicole. The title of the next one goes, Independent. And it reads, I was raised to be independent for as long as I can remember. When I encountered money

problems, I was so stressed and I refused to ask for help. As everyone does nowadays, I turned to the internet and found this podcast. Since then, I make better decisions and have a wealth of information about how to handle my finances. Go money rehab. The next one reads in all caps, superb exclamation point. And it goes, this show is the best ever. You will want to listen to all of the episodes. Nicole knows the real deal about money management and getting you out of financial trouble. The title of this next one is, can we all agree? Question mark. And it reads, money rehab is the best darn show on the internet.

Exclamation point. There, I said it. The next one says in all caps, very good. And then the review reads, can we talk about how the show is not receiving all the love it deserves? Money rehab is more than just a financial podcast.

It is everything you need in a podcast and more. So nice. The title of the next one goes, Listener Intervention is the realest ever. And it reads, Nicole is the only friend you need. She gives you useful tips that you can apply to your own life. These listener stories are so real. You can definitely relate to them. The title of the next one is No Words. And the description is, I have no words for you. That's how awesome the show is. I am speechless. Cannot even describe how amazing Money Rehab is. And then the last one we've been talking about recently is one with the title 100 Stars in all caps, exclamation point. And the review goes, is it possible to rate more than 100 stars? I love Money Re rehab so much.

Exclamation point, exclamation point, exclamation point. Your reviews are what allows me to keep the lights on and put this show out for you every single day. So one last time for now, anyway, thank you so much for taking the time to subscribe to and rate Money Rehab. I know that time is your most valuable asset, so I appreciate you using that asset to support the show more than I could ever say. Now let's get to the episode. Hey, guys, are you ready for some Money Rehab?

Wall Street has been completely upended by an unlikely player, GameStop. Are you ready for some money rehab? wasting our time. I will take a check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. Nicole Lappin. Here on Money Rehab, I am not just telling you how to invest. I'm telling you how you make money from investments. So far, we've talked about buying low and selling high, but there's another way investors make money on stocks. A beautiful, beautiful, gorgeous, I would even say, payout called dividends. A money rehabber, Jules, wants to know what they're all about. Here she is. Hey, Nicole. My name is Jules and I work in development for a nonprofit. I wanted to ask

you about investments, specifically dividends. How much can you make from dividends? And do all companies give investors dividends? Thank you. Okay, great question, Jules. Let's break this down so we can get you some of that dividend money. Here's the deal. Some public companies will give what are essentially monetary thank you gifts to investors. These thank you payouts are called dividends. Most dividends are paid quarterly, but some companies may pay out dividends at a monthly or annual cadence. There are a few different types of dividends. The two biggies are, first, cash dividends. Some companies will give investors dividends in the form of cash. The investor will likely receive the money via a deposit into their brokerage account. Number two, dividend reinvestment programs or DRIP.

This is the true everyone wins option. If an investor chooses to receive drips, any cash dividend issued by the company is automatically reinvested in the company's stock on behalf of that investor. The company wins because they get more money to play with. The investors win because they get more of a stake in the company and thus greater opportunity to reap more dividends later on. Quick dictionary note here. when an investor increases their investment in a company, you might hear them say that they're taking a, quote, larger position. So Jules, on your question around how much money you can make from dividends, the answer really depends on how big a slice of the pie a company can afford to

give shareholders and how many shareholders are splitting that slice. However, so you have some sort of reference, I will say that historically big companies will pay dividends that are around 2 to 5 percent of the stock price. In other words, if you buy shares in a company that is trading at 100 bucks a share, assuming a 2 percent dividend, you would be getting $2. Sure, that might not sound like a whole hell of a lot, but if the price of the stock grows, so does that dividend payout. And if you own multiple shares of that stock, well, those dividends can start to add up in a pretty significant way. And on the question

of whether every company issues dividends, the answer is nope. Although that would be very nice. If a company does issue dividends, it's typically referred to as an income stock. To tell whether a company pays dividends, you can go to the investor relations tab on their website or check out the company's annual report. Alternatively, you can also check out financial sites online that list companies with dividends like Investopedia's Markets Today. For today's tip, you can take straight to the bank. According to Kiplinger, some of the companies with the highest dividend payouts are IBM, Caterpillar, which is the world's

largest maker of construction equipment, the insurance company Chubb, along with some other companies that aren't household names, but are big names in the income stock game. I've linked Kiplinger's top 65 companies for dividend stocks in the show notes. Happy investing. Money Rehab is a production of iHeartRadio. I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Mike Coscarelli. Executive producers are Nikki Etor and Will Pearson. Our mascots are Penny and Mimsy. Huge thanks to OG Money Rehab team Michelle Lanz for her development work, Catherine Law for her production and writing magic, and Brandon Dickert for his editing, engineering,

and sound design. And as always, thanks to you for finally investing in yourself so that you can get it together and get it all.